NJMPF - An Anchor in Uncertain Storms

In the past 11 months of 2021, the KwaZulu-Natal Joint Municipal Pension/Provident Funds received a total of 11 awards in different awards categories from local and international organisations within the pension funds industry. The awards were recognition from the likes of the Institute of Retirement Funds Africa, Global Banking and Finance Awards, the International Finance Awards, Acquisition International and The European, and are testament to the Fund’s mission of providing superior retirement services. The NJMPF is delighted to receive recognition for paying attention to detail when serving and providing retirement services to municipal employees in KwaZulu-Natal.

At this crucial time, the NJMPF is truly living up to its motto of being an anchor in uncertain storms. For this year’s 67 Minutes for Mandela the Fund commemorated beneficiaries that earn a pension from the NJMPF and are living with disabilities, but due to the pandemic and government restrictions, the Fund was unable to visit all the beneficiaries to deliver their commemoration parcels. Irrespective of that, CEO Bonginkosi Mkhize, CFO Zinhle Ndlovu, Communications Manager Sizwe Tshabalala and Communications Supervisor Mbalenhle Ntuli were able to hand deliver parcels to some of the respective beneficiaries. The parcels consisted of personal protection equipment (PPE’s), assorted fruits, and other essential items. The CEO says what made these parcels special is the fact that they were made with love. The two executives along with staff members dedicated their time by spending an evening

NJMPF CEO/Principal Officer: Mr Bongi Mkhize

at the office sorting, putting the parcels together and wrapping them themselves - before being sent out to the beneficiaries. The team pulled together to prepare these parcels and worked together to ensure that they bring some love and light to the recipients during these trying times in the spirit of Ubuntu.

Bonginkosi Mkhize, the first black CEO at the NJMPF, explains that at this critical time of social distancing, it is important that the NJMPF stays connected to its members. Celebrating the beneficiaries was just one of many ways that the Fund stays connected to its stakeholders. The NJMPF celebrates the opportunity to uplift stakeholder’s lives through its status as one of the most awarded retirement funds in South Africa. The NJMPF is committed to its transformation by adapting to the constantly changing environment, the ever-changing financial markets and also in empowering its members through financial literacy. Mkhize stated that the Fund is dedicated to serving its members, pensioners and beneficiaries by continuing to uphold its mission of providing superior retirement services with their costeffective and quality solutions that will help facilitate specialised stakeholder’s needs. He also believes that the relationship with stakeholders has incredible potential, especially during these unprecedented times we find ourselves navigating through.

When asked what makes the NJMPF different and makes it stand out from its peers in the industry, Mkhize responded that the Fund’s governance structure is built on a culture where ethical and astute behavior is rooted in its DNA, over the years the Fund has constantly adhered to the governance requirements and been achieving AAA on the governance assesment by the Institute of Directors South Africa (IoDSA) which is the convener of the King Report. The Fund has a history of over a decade of achieving clean audit reports from the Auditor General in an environment where these are rare, NJMPF is a member-centric Fund, every project it embarks on must be for the benefit of its members, thats what makes the Fund stand out.

Sharing a bit of his background, Mkhize emphasised how important education is to him. In his early years, he had to balance his education with the herding of his father’s cattle – ensuring that he succeeded in both. He shared a motto that he continues to live by till this day that his father imparted to him, “A man’s riches are his cows”. He says that this motto is what fuels his passion for member education and engagement. Member benefits within the Fund are their ‘cows’, so long as their benefits/‘cows’ are sought after. Members need to ensure that their cows are fed (contribute the maximum rate and monitor their net replacement ratio). The more their ‘cows’ are fed consistently, the greater their returns will be. This simply means that at retirement members can enjoy their riches, retiring comfortably as their ‘cows’ will bring financial stability during their retirement.

The NJMPF has provided a solution that will ensure that members, especially the 16 000 provident fund members, enjoy a comfortable retirement by offering members a low-cost in-house living annuity - which they can purchase upon retirement and earn a monthly pension. This will put these members in line with their peers who contribute to the NJMPF’s defined benefit funds (superannuation and retirement funds), who have a guaranteed projected lump sum and a monthly pension upon retirement. The regulations for the provident fund only guaranteed a lump sum benefit upon retirement, the recent changes in the retirement funding industry where the annuitisation of the provident fund retirement benefits became effective as of the 1st March 2021. This gave direction for the provident fund members to be entitled to claim 1/3rd of their retirement benefit as a lump sum and use the 2/3rd remainder to purchase an annuity. The NJMPF in-house living annuity was developed with the member in mind ensuring that its members save as much as they can and administration fees for the living annuity are a egligible amount, probably the cheapest annuity product in the market.

The NJMPF is moving along with the world towards digitalisation, and it is not leaving behind its members. The Fund has introduced a new process for verifying the alive status of its pensioners, replacing the old manual system where pensioners were required to complete an annual declaration form, the new electronic process uses state-of-theart-technology to verify the alive status of pensioners. This is truly a wonderful solution, especially amid a global pandemic. Pensioners can stay at home and be safe whilst receiving their monthly pension and not worrying about it being suspended.

CONTACT US: Tel: 08610 NJMPF (65673) E-mail: info@njmpf.co.za 5 Derby Place, Derby Downs Office Park University Road Westville, KwaZulu Natal